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Roo Hsing Stock Code:4414
Overview
Leading Efficiency to Provide
• Supplies ~85 million pcs./year to customers across Europe, N. America, Japan and China.
• One‐stop shop service, from sourcing, design and development to shipment.
• 300 strong merchandizing team (including one Japanese speaking team) in communicating.
Excellent design team
• 20 professional designers and 100 fabric development and finishing technicians
• 250 skilled workers in the sampling department
• Excellence in patterning, lower the waste of the fabric
30+ production facilities and 35,000+ workers global wide
• China :5,000+ workers, focused on more complicated
• SE Asia : 25,000+ workers, focused on mass production for the Japanese and EU markets
• Africa: 2,000+ workers, focused on the mass production for the North America markets
• Central America:1,000+ workers,focused in the north American market
Continuously automation, lower the cost, keep in transform
• Automation started in 2013, raise the efficiency
• Wider the use of automatic machines, build up new SOP
• Information on-line, in preparation of the connection with the clients
Competitive Advantages
Since 2009 (post the
quota era), leading
fashion brands and
retailers have
consolidated their
supplier base,
choosing to work
with suppliers with
scale to meet their
production needs
Roo Hsing is
currently a key
supplier to its major
customers such as
Levi’s, g.u., Gap, etc.
Economies of scale
= cost advantage
Scale
Increases customer
captivity as customers
become dependent on
Roo Hsing for
procurement, testing,
design, development,
production, etc.
Strong knowledge of
raw materials,
production, etc. enables
JDU to help customers
bring down production
costs as early as the
design phase
Ability to provide
samples and
competitive quotations
to customers within a
week
One-stop
shop service
Transnational
operating facilities,
avoid the area risk
Cambodia enjoys
duty‐free access
to EU and Japan
Tanzania enjoys
duty‐free access
to North America
Central America
near the North
American market
and obtain the
relief advantages
Duty
Advantages
Raise the
efficiency and
keep the quality.
Easy to collect the
data of working
procedure, help to
control the
product flows.
Digital
information can
easily pass to
customers, to
control timing
Shorten the lead
time for
customers
Automation
Business ModelFactory Order CM fees)
Oders(FOB)
Samples
International Trading
•300+ merchandizers
•Smoothly connectin with
Customers
Manufacturing
•35,000+ workers across China,
south east Asia, Tanzania, and
central America
Design and
Development
•20 professional designers, 100
fabric / finishing technicians
and 250 sampling workers
•250 skilled workers in the
sampling department
Support
•Procurement, logistics,
production planning /
outsourced management,
factory inspection, QA /
testing, finance, HR & Admin
InternationalCustomers
One-Stop Service
Business
Production Washing/Finishing SamplingDesign and Development
Logistics QA/Testing PackagingOutsourced “CMT” Management
4 Factors Driving the Growth
Sales growth(Organic Growth)
Expanding the orders of existed clients
• Suppliers consolidation as a trend, each supplier would obtain more portion in the procurement demand from 5% to 20%.
• The increase of the orders from other famous brands.
Developing new customers
• Tanzania, Myanmar, Cambodia all have GSP offer, which can raise the willingness of European clients to place the orders.
• Nicaragua, El Salvador are close to the local market of U.S.A. New branders in the U.S.A have placed orders for delivery.
Mergers and Acquisitions(M&A)
• The branders’requirements of supplier integration have been established. Roo Hsing deeply feels that textile industry will face the same competition and consolidation as electronics industry. Just like what English idioms always said, ”Go Big or Go Home,”in the real world, we choose the “Go Big”way to expand the scale of economy by merging.
• Refer to the competitors :
1. In February 2017, the 35-year-old private Hong Kong Company Crystal Apparel Ltd. applied for listing.
2. In May 2017, Texhong acquired Nien Hsing’s Cambodian factory。
Strategic Alliance
Enhancement of production efficiency and adjustment
The introduction of automation in factory
• After adopting automation in sewing, the production of the jeans per worker per day increases from 17 to 21.
• The laser machine and ozone rinsing machine can save 67% of the water consumption, 85% of the usage of the chemicals and 62% of the usage of energy.
Centralized the logistics operation
• The adopting of ERP and RFID, leads the global facilities on-line.
• Unifying fabric inspection insure the best quality
• Computerize the warehouse management and shorten the pre-operation schedule
Inspection Factory
ChinaFactories
East AsiaFactoriesTanzania
Factories
Distribute
Capital costs would be effectively reduced
0
20
40
60
80
100
12
34
56
78
Cost Revenue
The advantages of low capital cost
• Using the US dollar as the main currency
• Taiwan has sound financial system and the interest rate is also lower than overseas financing
• Having strong liquidity of funds in the capital market
• Capital allocation is more flexible and the benefits of capital utility appear very quickly
The management of the suppliers’ value chain
Activating the efficiency of funds for the group
• Through the banks as the payment platform, the suppliers can get paid earlier
• With the huge amount of group procurement, the supply price is expected to decline, which will improve the efficiency of capital utility
• Payment term is stable, which helps Roo Hsing Company have a more flexible capital planning
• The cost of purchase decreases and the interest rate can be kept low
Roo Hsing
Suppliers Banks
Shipment Payment
Discount ; payment in advance
Facilities Around the World
El Salvador
(1)
Nicaragua(1)
Tanzania(1)
Myanmar(2)
Cambodia(18)
TaipeiHeadquarter
China(7)
Headquarter
Factory (*numbers)
Top Tier Global Brands and Retailers
North America
Customers are located across North America, Western Europe and East Asia
• Different peak seasons
• Diversify market risks
Europe
Asia
Capacity Distribution
Sales Analysis by Customers
Sales Analysis by Regions
Sales Analysis by Products
One-Stop Service
Q&A